FDIC Issues Crypto-Related Cease and Desist Orders to 5 Companies Including FTX US Exchange
The Federal Deposit Insurance Corporation (FDIC) has sent a cease and desist letter to five companies, including crypto exchange FTX US. CEO Sam Bankman-Fried explained that FTX does not have FDIC insurance, stating: “We never meant otherwise, and apologize if anyone misinterpreted it … to be clear FTX US isn’t FDIC insured.” FDIC Orders 5 Firms to Cease and Desist The Federal Deposit Insurance Corporation (FDIC) issued crypto-related cease and desist orders to five companies Friday. The agency regulates and insures the deposits of FDIC-insured community banks and other financial institutions. The letters demand that the five companies and their officers “cease and desist from making false and misleading statements about FDIC deposit insurance.” They must also “take immediate corrective action to address these false or misleading statements.” The five companies are FTX US, Cryptonews.com, Cryptosec.info, Smartasset.com, and FDICCrypto.com. The FDIC detailed: Each of these compa